The chief executive of Aer Lingus, Dermot Mannion, has resigned this morning with immediate effect.
The airline's chairman Colm Barrington will take over Mr Mannion's position until a successor is appointed. A statement from the company said its board had accepted Mr Mannion's decision to step down.
Aer Lingus, which made a loss of almost €120m in 2008, says the search for a new chief executive has begun.
Mr Mannion's departure will come as a surprise given that recession aside, life at the airline today is relatively calm compared to recent times.
He signed a three year-contract in 2005 and has been on a rolling one year contract since the autumn of last year.
Since taking over in 2005 from Dubai-based airline Emirates, he has steered the airline out of state ownership, fended off two hostile take-over bids from Ryanair and controversially axed the Shannon to Heathrow service before partly reversing the decision as flights resumed between the two airports last month.
Mr Mannion had led a constant focus on cost against a background of unpredictable fuel prices, strike threats, cut-throat competition and economic downturn in its key markets of Europe and the US. Hundreds of employees have left the airline.
The airline made a loss of €120m last year and it is anticipated that it will be loss making this year too. Sources at the airline say Mr Mannion's decision to leave was amicable.
Among the internal favourites to succeed Mr Mannion are deputy chief Niall Walsh and finance boss, Sean Coyle who recently joined the airline from Ryanair.
In the statement this morning, Dermot Mannion said his decision to step down will 'allow a new CEO to bring fresh thinking and new ideas to the business'.
Chairman Colm Barrington said the airline's board wanted to 'record our appreciation for his loyalty and dedication to Aer Lingus'.
'Against the backdrop of challenging market conditions, the board and management team are focused on maximising revenues, reducing operating costs while maintaining a strong balance sheet to deliver value for all shareholders,' Mr Barrington added.
Aer Lingus' share price closed at 67 cent on Friday, down around two thirds from a year ago and under half the €1.40 a share price Ryanair offered for the company in December.
Meanwhile, Aer Lingus' first European flight from London Gatwick Airport, its new international base, took off this morning to Malaga.
Aer Lingus will fly from Gatwick to eight European routes. Today, Malaga and Knock were the first destinations to be launched, with Vienna, Nice and Munich launching on April 20, with Faro and Zurich to follow on April 26.
Aer Lingus shares closed up five cent at 72 cent in Dublin.
